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Here comes Vanguard’s global credit bond fund: News Scan Money Management Executive

https://www.financial-planning.com/news/vanguard-files-paperwork-to-launch-a-global-credit-fund-news-scan?feed=00000153-9f90-d098-a37b-dfb9d93c0000



August 15

Money Management Executive Bond funds International funds Asset management Alternative investments ETFs Vanguard BMO Global Asset Management

Our weekly roundup of industry highlights

Vanguard proposes global credit bond fund
Vanguard filed preliminary registration for a global credit bond fund, which the firm expects to launch in November.

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    Vanguard proposes global credit bond fund
    Vanguard filed preliminary registration for a global credit bond fund, which the firm expects to launch in November.

    The fund will be actively managed and aim to invest in corporate and non-corporate obligations, excluding government-guaranteed issues, the firm said. The fund, a portion of which will be hedged to the U.S. dollar, will offer investors two share classes: Investor Shares (VFINX), with an expense ratio of 0.35%, and Admiral Shares (VFIAX), with an expense ratio of 0.25%, Vanguard said.
    Vanguard is cutting commissions for 15 mutual fund shares.


    “Our clients are increasingly looking to reduce their home bias and harness the return potential and diversification benefits offered by the international equity and fixed income markets,” said John Hollyer, global head of Vanguard’s fixed income group, adding that the fund’s “wide range of security selection opportunities and regional and sector exposures, combined with the flexibility of active management, will make it an attractive core or satellite portfolio holding.”

    Alts made available to more clients at AllianceBernstein
    AllianceBernstein announced it has reached an agreement to provide iCapital Network's alternative investment platform to high-net-worth investors, RIAs and multi-family offices.

    The partnership will simplify access and streamline the subscription process and performance reporting, improving the advisor and investor experience, the firm said.
  • With today's lower expected return environment, potential for rising interest rates, inflationary pressures and increasing volatility, it is critical for investors to maintain a well-designed allocation to alternatives that can help their portfolios weather uncertain markets," said Matthew Bass, head of global product strategy and alternatives business development at AllianceBernstein.

    PRODUCTS
    Assetmark launches 12 new portfolios
    AssetMark announced 12 new portfolios coming to its platform, which the firm expects will drive higher returns.

    "Dimensional Fund Advisors' robust investment process addresses a growing advisor need for low-cost, tax-efficient strategies," said David McNatt, senior vice president of product management and development at AssetMark.

    The portfolios, known as AssetMark MarketDimensions, are aligned with six risk profiles to target investors in different life stages, says the firm.

    Global X introduces new ETF family
    Global X is releasing two new ETFs aimed at helping investors achieve a specific income level: the Global X TargetIncome 5 ETF (TFIV) and the Global X TargetIncome Plus 2 ETF (TFLT). They have expense ratios of 0.77% and 0.78%, respectively, according to Morningstar.

    The funds were developed by Wilshire Associates. "We've structured indexes that aim to target specific yield objectives while mitigating risks," Jason Schwarz, president of Wilshire Analytics and Wilshire Funds Management, said in a statement.

    TFIV will seek a 5% yield, net of fees, and TFLT will seek the current 10-year US Treasury note plus 2%, according to the firm, which expects the funds to pay distributions monthly.

    Innovator launches ETF with structured outcomes
    Innovator Capital Management listed the Innovator S&P 500 Defined Outcome ETF, which offers protection levels of 9%, 15% or 30% over a near one-year period, the firm said.

    "No other ETFs in the market today seek to offer investors defined exposures to the S&P 500, where the downside protection level, upside growth potential and outcome period can all be known, prior to investing," said Innovator CEO Bruce Bond.
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